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Why is the fund's ROI so high? How is that even possible?

$BTC is a volatile asset. Spot market prices can post variances in double digits percentage-wise in just a single day. Our fund is bidirectional. We seek to enter into long positions to capture upward price movements; whilst seeking to enter short positions to capture downward price movements. In many ways, our performance (and the fund's ROI) is highly dependent and correlated to the price volatility of $BTC.
On top of this volatility, we utilise leverage to unlock higher levels of profitability. We balance our use of leverage with risk management practices. For example, our risk management policy limits our leverage (typically up to 3-5x leverage), we utilise tight stop-losses, etc.
There are a lot of risks inherent to trading, especially when trading crypto assets. Our fund, led by Milo Khoo, also engages partnerships with experienced technical analysts in the space; which has allowed us to outperform the market consistently since March 2022.

Is the fund directionally biased?

Our fund focuses on "trading by level". This means putting a focus on key levels of support and resistance, which largely shape and drive the overall direction (long/short) which our fund will take on a trade.
We also reflect on the macroeconomic factors driving the price action, as well as watching key trends across global markets.
Should factors arise which convince us to trade in a directionally biased manner, we will ride the trend. However, we do not hold assets on a drawdown without taking action. Our risk management practices are strict, and stop-losses are vital to our long-term sustainability and performance.

What happens when the fund makes bad trades and runs out of money?

The fund applies strict risk management practices and policies. Excess profits are always set aside as an "insurance fund" to ensure the fund will always be able to continue its operations.
However, there are events which may occur, either due to operational factors or due to macroeconomic factors, where the fund's trades are invalidated and lead to a drawdown. This is where our risk management practices come into effect - with tight stop-losses and limits against over-trading, we seek to avoid many of these common pitfalls.
Since we started in March 2022, we have been through several crises. The implosion of FTX affected our operations deeply, but our risk management practices allowed us to weather the storm and capitalise on its aftermath.

Do the NFTs have royalties?

Yes, our NFTs have 5% royalties from secondary market sales. The royalties go towards the project's operations and expenses.

Are the trades measurable in the blockchain?

No. Our trades are performed off-chain, on Centralised Exchanges (CEX risks apply) such as Binance, ByBit and Huobi.
Whilst it is difficult for us to provide transparency in this regard, we believe that our track record and regular updates can provide sufficient insight and comfort over our operations.

Are the dividend distributions airdropped to the wallets holding the NFTs?

Yes. Every month (if there are trading profits to distribute) a snapshot of the NFTs are taken. We capture the address holding the NFT and airdrop the dividend distribution to that address.
Note that to be eligible for the airdrop, you should also not list your NFT on any secondary marketplaces at the time of the snapshot. If your NFT is listed on a secondary marketplace at the time of the snapshot, it will not be included.
Last modified 13d ago